The latest Boeing and aerospace news, including updates about the Boeing 787 Dreamliner, 747-8 and 737, Airbus A380 and A350, the anticipated Boeing 797 and Boeing jobs and layoffs

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Boeing fourth-quarter earnings call live blog

“In 2010 we saw the global economy cont its transition to a sustained, albeit slow recovery. As part of that, however, there was a significant rebound in air traffic.”

“The demand for new airplanes remains strong”

“We do see an extended period of flat to declining defense budgets,” with more pressure on contractor margins.

“Our core programs executed extremely well in 2010.”

“While we made significant progress during the year on flight testing the 787 and 747-8, we continued to face challenges in meeting our commitments.”

Boeing is currently producing two 787s per month but still expects to ramp up to 10 per month by end of 2013 and deliver the first 787-9 in late 2013.

Still expect to deliver the first 747-8 Freighter in the middle of this year.

Boeing Corporate President and Chief Financial Officer James Bell

“We anticipate being substantially complete with (787) supplier negotiations by the end of this year” over compensation for delays in the program. “Customer negotiations are also ongoing.”

Negotiations are tracking to expectations.

“As of the fourth quarter, the (787) program is not in a loss position, including the additional costs associated with with the recently revised schedule.”

But those costs are putting pressure on profitability and we’re looking for ways to improve operations to offset that.

McNerney

On 737: “If we could come up with the right (replacement) airplane in roughly 2019, 2020, I personally feel that there’s a strong argument that the market will wait for us, notwithstanding the (A320) re-engining.”

“For me, putting our backlog at risk twice … not to mention the cost of two development efforts … only makes sense if the new airplane wants to be developed in 2025 and beyond.”

Based on what we’re learning about customer needs and technology, “I think we’re leaning toward development in the 2020 time frame.”

On 787 extended-range certification: “ETOPS is fully in the schedule and is contemplated to be completed” before first delivery. “We don’t want to deliver these airplanes without ETOPS and neither do our customers and neither does the FAA.”

Out of sequence work getting under control, is “fully contemplated in the schedule.”

On keeping plans to get to 10 787s a month by end of 2013: “We had a very conservative view and a significant amount of margin in our production ramp up plans. A lot of that margin is now eaten up by the latest delay, but we are not changing significantly the trajectory of the ramp. … Everything slid to the right roughly equivalent to the delay, and that is offset by a contingency we had in 2013.”

On 787 testing: Aside from ETOPS, “We’ve largely gotten most other things done.”

Expect to deliver 25-40 787s and 747-8s in 2011, with a roughly 50-50 split between the two.

On 787 margin: We have weeks of margin, not days or months.

On GE’s joint-venture deal to produce avionics for the Chinese Comac C919: “I don’t think that that threatens the proprietary nature or the innovativeness of our airplanes here. If I did I would raise my hand.”

Note: This is a seattlepi.com reader blog. It is not written or edited by the P-I. The authors are solely responsible for content. E-mail us at newmedia@seattlepi.com if you consider a post inappropriate..